2025 (1) TMI 679

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....76, 77 and 78 of the Finance Act, 1994 respectively. 2. Briefly stated facts of the present case are that the appellant is engaged in the manufacture of export of hand tools and is registered with the Central Excise department. A show cause notice dated 01.08.2007 was issued to the appellant demanding service tax amounting to Rs.4,44,724/- under reverse charge mechanism on commission of Rs.42,15,799/- remitted by them to the overseas commission agents for the period 09.07.2004 to 31.12.2006. The appellant replied to the show cause notice and also deposited the service tax alongwith interest on the service of overseas commission agents availed after 18.04.2006, the date when Section 66A was inserted in the Finance Act, 1994. As regards th....

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....eriod, chargeability of service tax on services received from outside India and the applicability of Section 66A of the Finance Act was not much clear and the said controversy was set at rest by the Hon'ble Bombay High Court in the case of Indian National Ship Owner's Association (supra). He further submits that the appellant had a reasonable cause for non-payment of service tax; and after the decision of the Hon'ble Bombay High Court, the appellant had paid the service tax along with interest for the period after 18.04.2006. He submits that the appellant should be given the benefit under Section 80 of the Finance Act and no penal action under Sections 76, 77 and 78 is warranted because the appellant had a reasonable cause for non-payment o....

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....tes the findings of the impugned order. 6. After considering the submissions made by both the parties and perusal of the material on record, we find that during the relevant period, the applicability of Section 66A was not clear as to whether service tax is to be paid on the services received from out-side India. The said controversy was set at rest by the Hon'ble Bombay High Court in the case of Indian National Ship Owner's Association (supra). By relying upon the said decision of Hon'ble Bombay High Court, the learned Commissioner has also given the benefit and confirmed the demand only for the period from 18.04.2006 to 31.12.2006 which the appellant has already paid alongwith the interest. 7. Further, we find that it has been held ....